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Experienced Member

payroll and single member llc

Hello,

 

Sorry if this is double, something keeps going wrong with my posts. I am a sole proprietor, single member llc. I want to pay myself with payroll. I have subscribed to QB payroll service. I have myself set up as an officer, gave myself 5000 a year salary, monthly pay. When I go to write myself a paycheck with the "pay employee" button, a window opens up that shows 192.31 under "rate" and 5000:00 under"hours" and it tries to write me a check for 192.31 with no withholding. 5000 / 12 should be 416 and change, and it should show withholding. This is why I paid for the service; I couldn't figure it out myself. Can anyone help? Thank you much!

Solved
Best answer 07-12-2019

Accepted Solutions
Established Community Backer ***

Re: payroll and single member llc

As a member of an LLC of any number of members it is illegal for you to pay yourself w2 wages UNLESS you elect to be taxed as a Subchapter S corporation which I at first guess doubt you want to do although you might.

 

As owner of your business all the money is yours and you can withdraw any amount at any time and it is called Owner/Member Draw and is just an advance on your year end pass through profit.

 

Why you purchased payroll product that is not appropriate just means somebody is a really good salesman

2 Comments
Established Community Backer ***

Re: payroll and single member llc

As a member of an LLC of any number of members it is illegal for you to pay yourself w2 wages UNLESS you elect to be taxed as a Subchapter S corporation which I at first guess doubt you want to do although you might.

 

As owner of your business all the money is yours and you can withdraw any amount at any time and it is called Owner/Member Draw and is just an advance on your year end pass through profit.

 

Why you purchased payroll product that is not appropriate just means somebody is a really good salesman

Experienced Member

Re: payroll and single member llc

Thank you for telling me that, I didn't know.